ENGINEERS

GUIDE
TO COMMERCIAL HOT
WATER DESIGN

Sri Deivasigamani & Jason Smith
Intellihot Green Technologies Inc.

Real-World
Dos and
Donts

Engineers Guide to Commercial Hot Water Design
Copyright 2014 by Intellihot Green Technologies Inc.

All rights reserved. No part of this book may be reproduced or
transmitted in any form or by any means without written permission
from the authors.



Printed in USA

Dedication
This short guide is dedicated to you and all the tireless engineers,
draftsman, plumbers, contractors, designers, architects, and builders.
Without your hard work, dedication, and creativity, wed be devoid of
the basic human need for good, clean water at the right temperature.

Wed love to hear from you! For questions, suggestions, corrections,
atta-boys, or otherwise, please contact Intellihot Green Technologies
Inc. Our regular business hours are Monday Friday, 7:30am 4pm
CST. During these hours, you can reach us by phone or email:

Phone: 1-877-835-1705
Email: support@intellihot.com
www.intellihot.com

Contents

Foreword ..........................................................................................4
Preface ..............................................................................................5
Introduction ......................................................................................6
What Does an Ideal Hot Water System Look Like?...........................7
Theory of Diversity & Fixture Count to GPM ....................................13
What Does That Mean? The Jargon..................................................16
Hotels and Motels.............................................................................19
Fast-Food & Full-Service Restaurants ...............................................23
Schools and Dorms, Hospitals & Nursing Homes..............................27
Swimming Pools, DI, RO Water Heating ...........................................30
Industrial Applications: Car Washes & Emergency Showers ............31
Recommended Intellihot Models by Application .............................33
Common Problems & Fixes...............................................................34

Foreword

When in doubt, tighten some more or add more storage. Sound

familiar? Sizing the water heating system is easy; sizing it correctly to
fit within a budget and space, however, is another story. This short
book helps readers navigate through jargon and gets straight to the
point. The authors recognize the fear of under-sizing equipment and
the cost of oversizing.

An analytic approach with a fresh perspective on the entire problem
i.e., hot water delivery based on application, not just a better water
heateris the basis of the design of the heat exchanger and controls.
The elegant solution becomes obvious after one peeks into the logic
and layout of the components inside.

I have known Sri since back in 2000 when we were building a smart-
shifter for our motorcycles to get in and out of a curve faster with the
lousy riding talents we had. While motorcycle performance and hot
water heating may seem different, both need precise inputs to
maintain the line or maintain temperature. So whatever curve is
ahead or flow demanded, control is maintained over the output. Hot
water delivered.

Siva Akasam
Chief Technology Officer

Preface

The content of this book is intended as a guide and a starting point to

help you ask the right questions, whether you are contemplating
Intellihot equipment or others. As is evident in the real world, just like
people, no two installations or conditions are alike. The authors urge
careful consideration of all the data and facts for any particular
installation when designing systems.

For legal purposes we are required to state that Intellihot Green
Technologies Inc. officers, agents, employees, parent or affiliate
companies assume no liability for damages arising from information
provided here to or by consumers or third parties or for damages
arising from or associated with water equipment sizing, design of the
system, quality, compliance with local codes, installation methods,
materials, or other circumstances related to application or installation.

Introduction

Commercial buildings in the U.S. use about 501 trillion Btu for water
heating on an annual basis (DOE September 2008). This translates to
approximately $3B spent on heating water, of which more than 50% is
wasted.

Current water heaters come in two basic designs(1) tank and (2)
boiler with a side-arm tank. Neither design heats water when needed
(on-demand) nor is it effective at serving the market in terms of
efficiency, reliability, cost, and space.

First, these systems produce large volumes of hot water 24/7 even
when water is not being used, resulting in large standby losses over
time. Second, they have poor heat transfer due to system design, and
frequently the efficiency of heat transfer is further reduced from a
build-up of sediment and scale.

Intellihot's water heating systems are designed to overcome these
deficiencies and realize the full potential of on-demand technology
and deliver unparalleled reliability and savings in energy and space.

What Does an Ideal Hot Water System Look Like?

An ideal water heating system should be just like your car. It should be
started when you are ready to go, not left idling overnight, and be
reliable. It should start up in rain, sun, snow, or any inclement
weather. It should run on fuel of any octane rating.

Unfortunately, current water heating systems are akin to using a
bulldozer to commute to work! Big, bulky, and left running. To make
matters worse, sometime two bulldozers are installed for the sake of
redundancy and reliability.

The following are some desired characteristics of an ideal water
heating system:

Handle varying loads with precise temperature control

Robust to cycles, poor water quality, low gas pressure

Learn and adapt to changes in operating conditions

Be compact, energy efficient, and install easily

See example below on the disparate needs of commercial applications

Hotels, Apartments, Nursing Homes,
Multifamily

Long periods (>12 hrs) of inactivity followed

by defined peak loads. Diversity (probability
of use) decreases with increasing fixtures.

Restaurants Full Service, Fast Food

High diversity factor (>90%) of fixture count,

highly cyclical operation (1 million cycles in
9 months).


The table below illustrates prevalent solutions vs. Intellihot:

Masterless Controls
Intellihot uses a propriety patented method called masterless
cascading. This system eliminates the need for a master controller
and the single-point failures that can arise from the failure of a master
controller. In addition, the Intellihot units share information on run
hours, firing cycles, flow, etc.then use an algorithm to distinguish
city driving versus highway driving and automatically rotate units to
normalize wear and tear. Rotation by hours is simply inadequate.

Right Sizing
Based on real-world field
data and after evaluation of
ASPE and prevailing sizing
methodologies, Intellihot has
developed a calculator to
right size the capacity
needed per application. This
capacity is then broken into
multiple units to result in a
system that has excellent
performance under varying
loads while simultaneously
leapfrogging reliability and
energy savings. When right
sized, storage can be eliminated entirely.
8


Why Are Storage Tanks Used?
There are two main reasons for storage tanks:
1.

To compensate for lack of boiler performance (turn down,

inadequate temperature control, inability to handle cycles,
thermal shock)

2.

Lack of reliability in the application sizing

The first leads to bulky equipment as well as poor utilization of energy
resulting from standby losses and operation in non-condensing
regions. The second leads to oversizing that further exacerbates space,
energy, and financial resource utilization.

Turn Down
Since a majority of hot water applications have varying demands
throughout the day, it is implicit that the hot water equipment
operate over a wider firing range. If this range is restricted, as is the
case with typical boilers (5:1), a storage tank has to be incorporated to
overcome this deficiency. Both storage tank and short cycling have a
dramatic effect (estimated to be 40%) on gas consumption.

The graph below illustrates how a typical boiler and Intellihot operate
when the demand is 30,000 Btu/hr.

Thermal Shock & Cyclical Nature of Applications
Certain applications have a significant number of
on/off operations inherent in their business. Full-
service restaurants in particular are more prone
to cycles (1 million cycles in nine months) than
hotels or multifamily dwellings. Furthermore, if
the intended solution for any application is to be
on-demand, then that in itself introduces
cycles. Hence any heat exchanger must be
fundamentally designed to handle these
cycles. Intellihot uses a single-finned tube
that is fully floating, thus allowing for
expansion/contraction as well for
extreme thermal shocks that occur when
directly feeding in cold water (no storage employed).
10

Temperature Control Logic

Human skin is an excellent detector of variation of temperature,
typically 5F to 7F. Hence for on-demand it is essential to maintain
temperature variations within this band for anticipated fluctuations in
flow. For an analogy about demand variations, see the graph below. It
represents an application with two showers and two faucets and a
typical cycle of turning on/off.

Intellihot uses a combination of temperature sensors and measured
flow rate, along with dynamic mathematical model-based controls, to
achieve precise temperature control, rapid response, and stability.

Dynamic
Model

Actuators
Blowers/Gas

Classical control methods such as feed-forward or feedback controls
are inadequate for a true on-demand system. However, one way to
overcome this shortcoming is to build storage around such heat
exchanger designs (usually fire-tube) to compensate for poor controls.
11

Low Gas Pressure (2.5 WC) & Failure to Ignite

Given the growing demand for natural gas, along with seasonal
demands and inadequate distribution infrastructure, it is common to
see depressed gas pressure during operation in the northeast U.S.
Also, other devices connected to the same gas line may cause a
temporary or sustained low gas pressure. Failure to ignite and
resulting lock-out can disrupt business operation.

Intellihot utilizes an extremely powerful premix
blower. Every 250,000 Btu/hr of firing rate is
supported by an individual blower. In addition,
the specially designed swirl plate and gas injector
make the gas train uniquely robust to low gas
pressures. The unit is capable of achieving full
firing rate for gas pressures as low at 2.5 WC.

Flue Gas Recirculation
Conventional boilers may require the air
intake and the exhaust to be at the same
planar location so as to provide minimal
pressure variations or disturbances from
wind, draft, etc. However, the co-location
of intake and exhaust may cause the flue
gas to recirculate, damaging the boiler.

Intellihot allows and encourages the separation of intake and
exhaust to prevent this issue.

12

Theory of Diversity & Fixture Count to GPM

The theory of diversity is really a theory of probability regarding how
many fixtures will get turned on simultaneously. It is intuitive that if
you design a water heating system to satisfy 100% of all fixtures being
turned on, it would result not only in a massive system (both
physically and financially) but also in enormous energy waste. It is also
apparent that buildings dont operate with 100% of the fixtures open
at any given instance in time.

Additionally, the type of application (hotels versus restaurants versus
stadiums) has discernable difference in the diversity or probability of
fixture use. Especially in new construction, there is insufficient data to
account for all the factors that impact hot water demand. Defined
design criteria are laid out in the ASHRAE guide and the Uniform
Plumbing Code (UPC). Both criteria focus on the use of probability
theory with a safety factor to compensate for unknown variables.

Thus, the next logical question is, How does one design a system that
is large enough to meet any and all anticipated loads yet small enough
to be economically and energy efficient? Here, rather than giving in
to fear of the unknown and resulting oversizing, we propose a data
and facts approach, one that is augmented by field measurements and
review of existing sizing methodologies proposed by ASPE, ASHRAE,
and prevailing sizing tools from other manufacturers.

Utilizing field measurements from various applications across the U.S.
and Canada, as well as accounting all the above factors, Intellihot has
developed a sizing calculator. We believe that this calculator presents
the user the optimum sizing, one that drives capacity shortage risk to a
minimum, while maximizing energy and space savings. The calculator
can be found on our website: www.intellihot.com.

13

Some examples of data that Intellihot has used in developing this

sizing calculator are shown below:

563-Unit Apartment Building in Northeast U.S.

This multifamily apartment complex was served by two 20 million
Btu/hr boilers. The measured peak flow over several weeks was 80
GPM. This resulted in a diversity/probability rate of 9.5%. Using a
diversity of 12.5%, Four iQ1000s with a capacity of 106 GPM at T
=70F were installed. This resulted in 33% additional GPM capability
over the measured flow rate.

320-Room Hotel in Midwest U.S.

This convention hotel with three full-service restaurants and a
commercial laundry was originally served by two 3 million Btu/hr
boilers. The measured peak flow over a fully occupied hotel during
14

conventions was 56 GPM. This resulted in a diversity/probability rate

of 11.7%. Eight wall-hung Intellihot units now service this location.

Fast-Food Restaurant in Midwest U.S.

This fast-food restaurant was served by a 119-gallon, 199,000 Btu/hr
storage water heater. The measured peak flow over several weeks was
7 GPM. This resulted in a diversity/probability rate of 15%. Using a
diversity of 20.5%, two i200s with a capacity of 10 GPM at T =77F
were installed. This resulted in 33% additional GPM capability over the
measured flow rate.

162-Room Hotel in Southern U.S.

This convention hotel with one full-service restaurant and a
commercial laundry was originally served by two 3 million Btu/hr
boilers. The measured peak flow over a fully occupied hotel during
conventions was 32 GPM. This resulted in a diversity/probability rate
of 13.1%.

15

What Does That Mean? The Jargon

Thermal Efficiency of Boilers or Water Heaters
Applies to water heaters/boilers and determines maximum flow rate
capacity at high fire. How much energy has gone into heating water or
boiler hydronic fluid from the input energy source (either gas or
electric power)? For water heaters, the tests are carried out at inlet
temperature of 70F and outlet temperature of 140F at maximum
firing rate. For boilers, the inlet temperature is set to 80F and outlet
temperature at 180F.

It is not uncommon to see storage water heaters or boilers rated at
95+%. However, in the real world, they seldom run at this efficiency as
the inlet/return temperature is much higher (~ 130F) due to storage
return water temperature or just stored volume around the heat
exchanger. Also, some tanks and boilers may also be rated at 99+%,
which may be true only at the lowest firing rate and not
representative of efficiency at usable operating conditions.

Lastly, no matter how well insulation is applied to the tank, it will lose
energy, and thermal efficiency percentages do not correlate to energy
cost reduction unless the storage is negligible and the system works as
on-demand.

Recovery Efficiency
Applies to water heaters only and determines maximum flow rate
capacity at high fire. This is the same as thermal efficiency except that
the inlet temperature is at 582F and the outlet temperature is set to
1352F.



16

Energy Factor
This applies only to residential water heaters under 200,000 Btu/hr.
Based on a simulated hot water use cycle representing real-world
use, for every $1 spent on fuel (either gas or electricity), how much of
that dollar has really gone into heating water? This is more
representative of true operating costs of a unit and can be used to
compare various models.

Combustion Efficiency
This indicates what is available for the heat exchanger to transfer to
water after stack/flue losses are considered. In a condensing heat
exchanger, at low firing rates with a skewed input energy to heat
exchanger surface area, this can approach 100% or even higher
depending on the relative combustion air and water inlet
temperature. Hence for comparison purposes, this parameter is
relevant only at maximum firing rates.

Feed Forward Controls
From a control theory perspective, this means that the control
variable adjustment is not error-based (desired minus actual) and the
control system activates its control signal in a pre-defined way. It is
our conjecture purely from an engineering perspective that this term
is misapplied, and truly in water-heating/boilers no action is taken
without changes to some variable (e.g., flow or temperature). Reason:
It is not possible to predict changes in flow or ground water
temperature before they happen unless you are psychic, in which case
we want you on our team.

Grades of Stainless, Corrosion, Chlorides & Otherwise
Stainless steel is much more resistant to corrosion than carbon or alloy
steels; however, in some circumstances it can corrode. It is stain-less
not stain-impossible. Generally, steel with more than 12% chromium
readily forms a passive film, which drastically increases corrosion
17

resistance on exposure to the service medium. The most common way

that this passive layer or the homogenous composition of stainless
steel is disturbed is by welding that creates a so-called heat-affected
zones and causes a low percentage of chromium, thus making these
areas more susceptible to corrosion. Carbon present in the stainless
can further aggravate this problem, and so if any welding is to be
done, it is preferred to use low-carbon stainless or L.

High chlorides in the water may also exacerbate the strength of these
welds and cause stress corrosion cracking at these locations. Intellihot
heat exchangers avoid these problems on the water side, by having
zero welds and using 316L (18% chromium, low carbon) for the tube
material. On the flue side, the welding of the fin to the tube is
accomplished using a laser welding technique, which virtually
eliminates any heat-affected zonesthus preserving the
compositional integrity of stainless steel.

18

Hotels and Motels

Sizing and setup can vary depending on hotel/motel use, room type,
and peak occupancy. Showers are the primary demand for hot water
in these types of buildings. Laundry demand can also be a factor, but
in typical applications, it is seen that the laundry demand times differ
from those of the shower peak demand.

These applications can be grouped into typical installation methods
and sizing:

80-120 Rooms: 2-3 tank-type hot water heaters oversized for

redundancy

160-300 Rooms: 2M-3M BTU/h boilers with multiple storage

tanks (many up to 1000 gal.)

350+ Rooms: 3M-5M BTU/h boilers with multiple storage

tanks (many up to 1000 gal.)

Intellihot standard sizing can be accomplished using on-demand-type
units with a recirculation line and without storage. However, storage
tanks can be integrated with the Intellihot units if desired.

80-120 Rooms: 4-5 wall-hung units (i200 , i250, iQ250)

160-300 Rooms: 2-3 floor-mounted units (iQ750, iQ1000)

350+ Rooms: 3-4+ floor-mounted units (iQ750, iQ1000)

These typical Intellihot configurations can be illustrated in piping
schematics. For Hotels and Motels, Intellihot recommends using a
diversity factor of 18%. However, final sizing should need to be
verified per the specific application.

19


20


Apartments & Multifamily Dwellings
Similarly, apartment complexes and multifamily dwellings have factors
that need to be taken into account before proper design can be
established. The fixtures/number of occupants per unit, the
demographics of the occupants, seasonal factors, and weekday versus
weekend trends should be considered when figuring design.

These applications can be grouped into typical installation methods
and sizing:

10-30 units: 1-2 tank-type hot water heaters

40-80 units: 2-3 tank-type hot water heaters typically

oversized for redundancy

100-200 units: 2M-3M BTU/h boilers with multiple storage

tanks

300+ units: 3M-5M BTU/h boilers with multiple storage tanks

Intellihot representative sizing typically would reduce the physical
space required for the units along with the energy savings by heating
only the water that is needed. This can be accomplished with or
without storage and a building recirculation line.

10-30 units: 2 wall-hung units (i200, i250, iQ250)

40-80 units: 3-4 wall-hung units (i200, i250, iQ250)

100-200 units: 1-3 floor-mounted units (iQ750, iQ1000)

300+ units: 3-4 floor-mounted units (iQ750, iQ1000)

These typical Intellihot configurations can be illustrated in piping
schematics. For apartments and multifamily dwellings, Intellihot
recommends using a diversity factor of 12%. However, final sizing
should to be verified per the specific application.

21

22

Fast-Food & Full-Service Restaurants

Fast-Food Restaurants
Fast-food restaurants typically have a low overall demand. The highest
demand periods will occur with either pot-sinks, hand sprayers,
dishwashers, or washing machines are running. Most fast-food-type
restaurants do not have all of these fixtures in them and therefore
need to be reviewed before designing the system.
Traditional setup of hot waters typically includes:

1-2 tank-type, 119 Gallon hot water heaters

Intellihot can eliminate the wasted energy and physical space by

utilizing on-demand hot water with typical installation:

1-2-wall-hung units (If there is an external recirculation pump

use i200, else i200P)

23

Full-Service Restaurants
Full-service restaurants tend to have a more constant demand with
many cycles during operational hours. Fixtures include multiple food-
prep and clean-up sinks, dishwashing machines and compartment
sinks, washing machines for linens, and bar sinks.
Traditional hot water heating systems for full-service restaurants
would typically consist of:

2-3 tank-type hot-water heaters with 200-400 gal. additional

storage for dump loads

Intellihots design would reduce or eliminate the need for storage for
any dump loading that may occur.

Small Restaurant: 2-3 wall-hung units (If there is an external

recirculation pump use i200, else i200P)

Large Restaurant: 1-2 floor-mount units (iQ750, iQ1000)

For Full service and fast food restaurants, Intellihot recommends using
a diversity factor of 21%. As with any application, the amount of
fixtures and how the restaurant operates (seasonally, peak time of
day, continuous service, etc.) is key in developing the sizing
requirements.

24

 Note on Dishwashers

For supplying hot water to low temperature dishwasher

(140F rinse), its GPM usage, run time cycles should be
factored. A small amount of storage (typically less than 3
gallons) is generally needed. Usually this amount of storage is
available in the line itself. 100 ft of line contains 2.30
gallons.

For supplying hot water to high temperature dishwasher

(180F rinse), again its GPM usage, run time cycles should be
factored. A slightly larger storage (typically less than 6
gallons) is generally needed. It is recommended that
dedicated heater using model iQ250 along with adequate
storage be used.

25

26

Schools and Dorms, Hospitals & Nursing Homes

Many current schools have oversized systems with old boilers and
tanks that are failing, inefficient and under-utilized. Currently, showers
are becoming less of a factor during the day, especially in elementary
or primary schools. Showers still can make a portion of the demand for
hot water, but may be at times of sporting contests or at off-peak
times. Teachers lounges, specialty classrooms (art, sciences, etc),
laundries, and kitchens are all possibilities for hot water demands for
schools.

Traditional school setups:

Elementary/Primary School & High schools: Multiple tank-

type hot water heaters or boiler/storage setup

Intellihot can eliminate the need for extra storage, even with a variety
of different uses that can occur throughout a school.

Small Schools: 3-4 wall-hung units (iQ250)

Larger Schools/High Schools/Dorms: 1-4 iQ- floor-mount units

(iQ750, iQ1000)

For schools and dorms, Intellihot recommends using a diversity factor
of 18%. However, final sizing should need to be verified per the
specific application

27


28


Hospitals & Nursing Homes
There are the obvious considerations for hospitals and nursing homes
like number of beds/rooms, showers, etc.but thought needs to be
added for hot water demands from items like therapy showers/tubs,
scrub-up sinks, and more of a continuous laundry load. These
applications would tend to have less of a hard peak loading and would
be spread more throughout the day.

Similar to schools and dorms, hospitals and nursing homes would
typically have a boiler setup with storage for domestic hot water.

Intellihot could remove those inefficient and wasteful boilers/tanks
and replace them with on-demand hot water without the use of bulky
storage.

Intellihot recommends: 1-4 iQ-series (iQ750, iQ1000) floor-

mounted hot water heaters cascaded with a recirculation line

29

Swimming Pools, Deionized, Reverse Osmosis Water

Heating

Swimming pools, deionized water (DI), and reverse osmosis are unique
applications that require specialized materials because the water used
is treated and could become highly corrosive. Intellihot has
constructed a special model, the iQ250D, where all wetted metal parts
are made of 316L to resist corrosion, harsher environment, and
contamination.

Sizing for pools depends on the size of the pool, amount of flow
required, and water temperature desired.

30

Industrial Applications: Car Washes, Emergency Showers

Industrial-type applications can vary in many different ways. Hot water
can be called for in manufacturing processes (pharmaceutical,
cosmetic, food processing, etc.) along with typical hot-water demand
(showers, lavatories, hand wash, etc.). Car washes need to be able to
provide a steady flow of water for the higher car washing seasons.
However, if using storage, the energy that constantly heats the water
is wasted.

Tepid water (typically 80-90F) is also needed in most industrial
situations in the form of face and eyewash/emergency showers. Per
most codes, these emergency showers need to provide 20 gpm for 15
minutes and the face and eyewash stations need to provide 3 gpm for
15 minutes. Because these are seldom used, tank water heaters for
these can be inefficient.

Traditional industrial hot water supply:

2-4 tank-type water heaters depending on application sizes,

additional dedicated storage for emergency fixtures

Intellihot sizing methods:

2-4 wall-hung units (i200P), dedicated on-demand units for

the tepid water for the emergency fixtures that will only heat
the water when required without wasting the energy of the
tank-type

31

32

Recommended Intellihot Models by Application

Intellihot offers a wide-range of models that suit most applications
that can arise in any project. Below are a list of the Intellihot models
and typical applications they can be used in.

These applications are just a small representation of what Intellihot

units can do. Intellihot can come up with a solution to any project that
requires hot water in an efficient and economical way.

33

Common Problems & Fixes

As with any equipment installation (mechanical, electrical, plumbing,

etc.), tankless water heaters can have problems or not function as
they should. Most problems that arise can be fixed quickly and easily
with the proper knowledge and information. Here are a few common
problems and solutions:

Verify that the external recirculation pump is functional and

installed correctly. This could cause the hot water to not be
instantaneous.

Make sure the pump(s) are sized correctly along with the
number of risers in the building and the height that the risers
attain.

Verify that the gas lines are sized correctly (pressure and
diameter). Failure to do so will limit the performance of the
unit and prevent it from firing to full capacity.

Intake and exhaust air should be installed per all applicable

codes and properly designed. Failure to do so could result in
catastrophic events. All Intellihot units come with manuals
that include all required information.

Piping should be sized and installed according to the manuals.

Verify that the valves installed are in the correct position and
orientation.

Intellihot can help solve any problems with applications. Feel free to
contact us and we can assist in hot water needs.

34


About the Authors

Sri Deivasigamani CEO, Intellihot Green Technologies

Sri Deivasigamani is a mechanical engineer with a focus
on marine engines and control systems with 16 years of
non-perfect mechatronics. He graduated at the bottom of
his class and suggests that the contents of this book be
used only for reflection. In his spare time he likes to work
on motorcycles and robotic lawn mowers.

Jason Smith, PE Applications Engineer

Jason has been a licensed professional engineer since
2006, working with all types of building systems. He is a
fan of all sports and loves to spend time with his family.
He also prefers clean, hot water when he wants it.

Intellihot Green Technologies Inc.

2900 W. Main Street, Galesburg, IL 61401 phone: 877.835.1705
email: sales@intellihot.com www.intellihot.com